At the end of the first year of life, the Letter (Leliq) of the Central Bank of the Republic of Argentina (BCRA) accumulates savings more than 851 billion pesos, and since the beginning of October, when the new monetary policy was launched, they have already paid interest of 104,353 million pesos.
The first Leliq auction took place on January 10, 2018, under the leadership of Federico Sturzenegger, Head of the Central Division. Only banks can obtain an instrument that was an alternative to replacing some types of passive passport of a monetary authority and have a maturity of seven days.
Although it was not very attractive to the market at first, as its initial performance of 27% was overshadowed by Lebac (now extinct), starting with the new and aggressive BCRA monetary policy, they became one of Spearheads trying to leave behind the crisis.
At the end of September, when Guido Sandler took over the Central Division, Leliq became one of the main weapons to try to end the interruption of interchange: they will be used to disarm the so-called "Lebac bomb" (whose monthly deadlines added huge pressure to the dollar) to absorb the peso and dry place also set a reference rate.
The implementation of the aggressive monetary plan took place on 1 October, when Leliq was auctioned at an average court rate of 67.17%. And a week later the harvest reached 73.52%.
As a result, liquidity letters became the most attractive investment banks and this happened savingsthat only Sandler in the first month of the plan increased from 257,901 million pesos to 519,919 million pesos.
At present, this instrument amounts to 851 380 million pesos and, according to private calculations, BCRA paid interest of 104,805 million pesos from 1 October. On average, maintenance of the scheme required 1587 million pesos per day.
Leliq became the central high-vacuum vacuum. On the way, there was a terrifying Lebaka, the waters in the currency market calmed down (dollar revenues from the agricultural and export sectors improved conditions) and the monetary authority has so far been able to overcome its monetary expansion objectives.
The external front and local market conditions allowed the Leliq rate to deepen in the last few days, ending 58.11% per annum on Friday, the lowest level since the former monetary authority ruler Luis at the end of August set the benchmark rate at 60%.
"It is true that savings Leliq, if the rate does not decrease, tends to grow rapidly. But this rate is decreasing, and as it continues to decline, the growth rate is declining, ”explained Gabriel Caamaño from Ledesma.
The economist added that the amount of Leliq was less than 60% of the cash base, while Lebac and the rest of the Central Unit's outstanding liabilities amounted to 160 percent.
"The crisis, which failed, greatly corrected many things. And one of the adjustments was the balance of the Central Bank. This regime, which comes to stabilize part of another and has more oxygen," he compared, and the rate: "I don't see problem Leliq if the trajectory is what we observe by reducing the rates. "
Fiscal deficit – a problem that needs to be addressed
A study by the Argentinian Fiscal Analysis Institute (Iaraf) reported that for the first time in 10 years, last year it ended with a neutral amount of central bank monetary issuance. Since 2009, when transferring profits, advances and foreign currency purchases, he stressed that BCRA financed the Treasury more and more. It happened even in the first half of 2018, but since July there was a "firm commitment to eradicate genuine sources of inflation", said Iaraf.
The original text of this article was published on 01/14/2019 in our print edition.